Rational Decision-Making Model - Essay Example

Rational Decision-Making Model Decision making is required in every field whether it is business or routine life activities. It is required to make effective decisions in limited time by formulating policies through proper planning. Rational decision creation representation is referred to a controlled and chronological strategy for resolution making which is intended towards attaining precise solutions to well-defined problems making use of defined methods. The decision maker can gather necessary information through observations and statistical analysis. Moreover it also requires modelling and a systematic analysis of real quantitative data for analysis for making selections through alternative course of actions (Lunenburg, 2010). Rational decision creation model is a cognitive progression which requires that each step must be followed in a logical manner and in an organized manner. Cognitive process of rational decision making model requires thinking and evaluating the alternatives for attaining the best possible result. There are various rational models available all of which have various steps involved and the steps which are inter-related also differ in different models. Some people are of the opinion that rational decision creation is comparable to trouble solving. It is evident that some resolutions are not dilemma oriented and does require telling the common delineation of a rational representation. Rational decision making is considered a multi-step procedure which requires logical and sound decisions to be made executed in an orderly manner starting from problem initiation through solution. The entire process starts with formulation of goal, identification of criteria for decision making and then working on the alternatives for making analysis and making finalized decision (Secchi, 2010). Benefits of having Rational Decision Making Representation Rational decision creation is a model has numerous advantages associated which advocate that individuals are able to make preferences that will take full advantage of benefits to themselves and reduce any associated expenditure. This model does not take into account inherent costs which are mostly regarded as ethical concerns, or advantages that may originate from selflessness. The other area of rational decision making model requires management to make some vital assumptions about a particular decision. Hence it requires that the person should have complete and precise information available about the selected preference which has been made. Moreover the person should have cognitive ability and time for weighing every choice available with them which will allow them in making an efficient decision (Nayab & Finn, 2011). However it can be asserted that rational decision making is completely designed using scientifically collected data which allows making informed decision making. Once the data is carefully selected and analyzed it helps in reducing the chances of errors and misrepresentation. The assumptions and conjecture combined with subjectivity are all considered as the leading causes for poor and inequitable judgments. The biggest advantage is that information and knowledge are all based on performance which must be consistent, reliable and of high quality. It helps greatly in reducing risks and uncertainties associated with the concerned resolution (Noorani, 2010). The rational decision making model instils a proper strategy for making decisions which must be disciplined, consistent and logical in manner. As it is a step by step methodology which requires that problem must be defined clearly before taking any decision and action. Once the problem is precisely defined and particular decisions are identified using weights. Moreover it is also required that various alternatives must be listed carefully and then rated against each alternative defined. All this sequential methodology focuses on addressing towards complex issues by breaking it into simpler steps and then analyzing every aspect of the problem with all probable solution before arriving at a final verdict (Boumans, 2011). The administrative and managerial environment has turned out to be too intricate and lively which necessitate that logical assessment and rational resolution making must be executed in an organized manner. Opportunity or problem recognition is regarded as a vital element towards effective decision making. Prior to defining problems and opportunities it can be regarded complex for differentiating the occurrences or positioning it in appropriate perception. The introduction of alternative approaches which are basically required for dealing with the circumstances which in turn depend majorly, on how well the circumstance is defined (nedprod.com, 2011). Disadvantages of rational decision making Some of the major disadvantages associated with rational decision making process are that it necessitates vigilant contemplation and consideration of information. All this process of rational decision making requires substantial time which further makes it unsuitable to making for quick-decisions. In the period of fast-paced alteration, stopping the opportunity or any problem as soon it is discovered along with its initiation must be immediately stopped while the rational decision model does not exist to this task. The obstruction in production and formulating a verdict can result in dilution of the noticeable advantage of such alternatives. The other disadvantage is that benefits can only be attained at a particular time but if not executed in a proper and timely manner may result in losses. Apparently this model is found to be useful only for long-term and policy resolution as compared to interim or base level functioning decisions (Reyna & Rivers, 2008). Rational decision creation is precipitous in conservatism, and requires substantial caution. Mostly it has been viewed that managers are reluctant in taking a decision or they must follow their guts and instincts for making a gamble, otherwise the opportunity will be seized. Likewise many times accomplishment is based on being the leader in the area, or the primary to initiate a novel and inexpert creation, which may eventually be recognized and accepted widely. Moreover it is apparent that limited decision making and analysis of the data may impede the process of making reliable decisions. Further the unavailability of precedent tends or information in relation to new products or prospects will originate rational decision makers to choose for more protected and conformist alternatives (Bruce Barrett, 2012). Rational decisions are defined as structured, formal and informed approach but managers or individuals who tend to follow this strategy are regarded as out of favour, with the position and organizer which is termed as tactless oppressive leaders. The foundation of consistency is profit increase or end result direction, and interpersonal relationships or sensations which have no position in what comprises of consistency. Dependence on specific information requires disregarding or giving inferior significance to susceptible human associations. Moreover it is clearly evident that the benefits of rational decisions become obvious only in the long term. The immediate management and administrators may not be able to view instant or concrete results or advantages of the verdict. This united with the inconsiderateness to human sensation causes a pessimistic discernment. Assumptions While rational decisions endeavour to eliminate prejudice, assumptions, and ambiguity from the decision-making process, the process itself is based on many assumptions. First assumption of the rational model supposes that the decision maker has exact information and information of the state of affairs, the fundamental cause and effect relationships must be assessed against various situations, and the obligatory tools and proficiency must also be analyzed tactfully. The other underlying disadvantage of this process is that for being accurate and quality oriented integrity of information must be ascertained. This process works with scientific data for producing the most optimal choice works well in theory, but human aptitude has limits to assemble, develop, and understand all the information required to optimize a resolution outcome. Such imperfection in information directly translates to a imperfection in the decision (Mogler, 2008 ). This model also assumes that conditions should be remained stable. It is apparent that the real world always remains in an invariable state of fluctuation and, frequently, the information required for making a verdict either remains partial or remain persistently altering, which compels the decision creator to manage. Eventually the individuals who make decisions rely majorly on culture, conference, experience, education, and many other associated factors. The pros and cons of the rational decision-making methodology recommends that it finds use as a facilitating tool to assist in decision-making and supplement the existing system in certain situations (Lakshminarasimhan, 2011). One of the major problems with rational decision making model is that it revolves completely on simplistic assumptions along with the introduction of alternatives and precise information. But if the related data is not available the entire decision making model becomes ineffective. The entire model requires tinge of sensation and other vices which are component of their entity frames. Within bounded discretion, mostly the managers consider this model as an efficient one for implementation in many organisations. It will turn out as a channel to line managers and qualified group for developing effective solutions to trouble based on rational thinking without sentiment and rule of the thumb which come into sight to be the rule than exemption. The entire thought is to present them with a reliable and effective structure for pragmatic problem resolution. On the other hand it is significant that guidance be conducted for them particularly in the vicinity of problem acknowledgment, ideas creation and assessment (Efuntayo, 2010). References Boumans, M., 2011. The two-model problem in rational decision making. SAGE Journals, 23, pp.371-400. Available at: http://rss.sagepub.com/content/23/3/371.abstract [Accessed 15 July 2013]. Bruce Barrett, M.P., 2012. Evidence, Values, Guidelines and Rational Decision-making. Journal of General Internal Medicine, 2, pp.238-40. Available at: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3270230/ [Accessed 15 July 2013]. Efuntayo, E., 2010. Benefits of a Rational Decision Making Model. [Online] Available at: http://ezinearticles.com/?Benefits-of-a-Rational-Decision-Making-Model&id=4806669 [Accessed 15 July 2013]. Lakshminarasimhan, S., 2011. Is the Rational Decision Making Model Right for Your Organization? [Online] Available at: http://leadership-management.knoji.com/is-the-rational-decision-making-method-right-for-your-organization/ [Accessed 15 July 2013]. Lunenburg, F.C., 2010. THE DECISION MAKING PROCES. NATIONAL FORUM OF EDUCATIONAL ADMINISTRATION AND SUPERVISION JOURNAL, 27, pp.1-11. Available at: http://nationalforum.com/Electronic%20Journal%20Volumes/Lunenburg,%20Fred%20C.%20The%20Decision%20Making%20Process%20NFEASJ%20V27%20N4%202010.pdf [Accessed 15 July 2013]. Mogler, C., 2008. Emotional vs. logical/rational decision making - A research project about the role of feelings in the process of decision making. GRIN Verlag. Nayab, N. & Finn, W., 2011. Is Using the Rational Decision Making Approach a "Rational" Choice? [Online] Available at: http://www.brighthubpm.com/methods-strategies/121817-is-using-the-rational-decision-making-approach-a-rational-choice/ [Accessed 15 July 2013]. nedprod.com, 2011. Advantages and disadvantages of adopting a multi-paradigm or multi-rationality approach. [Online] Available at: http://www.nedprod.com/studystuff/MN3102%20Essay.pdf [Accessed 15 July 2013]. Noorani, H., 2010. Rational Decision-Making. Xlibris Corporation. Reyna, V.F. & Rivers, S.E., 2008. Current Theories of Risk and Rational Decision Making. Developmental review, 1, pp.1-11. Available at: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2352159/ [Accessed 15 July 2013]. Secchi, D., 2010. Models of Rationality and Decision Making in Organizations. International Journal of Organization Theory & Behavior, pp.1-2. Available at: http://www.uwlax.edu/faculty/secchi/dsweb/CFP-IJOTB.pdf [Accessed 15 July 2013]. Read More